Florida Solar Incentives & Tax Credits

Florida offers some of the best solar incentives in the nation, making it an ideal state for homeowners to go solar. Between the federal tax credit, state tax exemptions, net metering programs, and local utility rebates, Florida residents may be able to reduce the cost of solar installation by 40% or more.

However, time is running out for one of the biggest incentives. The federal solar tax credit is scheduled to end on December 31, 2025, which means homeowners who want to take advantage of this significant savings opportunity need to act quickly.

This comprehensive guide covers every Florida solar incentive available and explains how to claim each one.

Federal Solar Investment Tax Credit (ITC)

The federal Investment Tax Credit (ITC), also known as the Residential Clean Energy Credit, is the single largest incentive available to Florida homeowners installing solar panels.

How Much Can You Save?

The federal solar tax credit allows you to deduct 30% of your total solar installation costs directly from your federal income taxes. This includes:

• Solar panels and mounting equipment
• Inverters and electrical components
• Battery storage systems (minimum 3 kWh capacity)
• Installation labor costs
• Permitting fees
• Sales tax paid on equipment

For example, if your solar installation costs $25,000, you may be eligible for a $7,500 federal tax credit.

Critical Deadline: December 31, 2025

Important: The federal solar tax credit for residential installations will no longer be available after December 31, 2025. This deadline was established when President Trump signed the "One Big Beautiful Bill" into law on July 4, 2025, eliminating the residential solar tax credit nearly a decade ahead of its original expiration date.

There is no phase-out period for residential installations. Your solar system must be installed and operational by December 31, 2025, to qualify for the 30% credit.

How to Claim the Federal Tax Credit

To claim the credit, file IRS Form 5695 (Residential Energy Credits) with your tax return. Enter your total qualified installation costs, multiply by 30%, and transfer the credit amount to Form 1040, Schedule 3. If your credit exceeds your tax liability, unused amounts carry forward to future years.

Note: You must own your solar system to claim the credit. Leased systems or power purchase agreements (PPAs) do not qualify for the homeowner credit.

Florida Sales Tax Exemption

Florida exempts solar energy equipment from the state's 6% sales and use tax, providing immediate savings on your installation.

What This Means for You

When you purchase a solar energy system in Florida, you will not pay the standard 6% sales tax on qualifying equipment. On a $25,000 system, this exemption could save you approximately $1,500.

What Qualifies

The exemption applies to photovoltaic panels, inverters, control devices, wiring, power conditioning systems, and battery storage devices. All equipment must be certified by the Florida Solar Energy Center.

How to Claim This Exemption

No paperwork required. The exemption is applied automatically at the point of purchase. Your solar installer should not charge Florida sales tax on qualifying equipment.

Florida Property Tax Exemption

Florida provides a 100% property tax exemption for the added value that solar panels bring to your home. This is one of the most valuable state-level incentives available.

How It Works

Solar panels typically increase your home's value. Studies suggest that homes with solar sell for a premium compared to similar homes without solar. Normally, an increase in property value would result in higher property taxes.

However, Florida's Property Tax Abatement for Renewable Energy Property ensures that 100% of the value added by your solar energy system is exempt from property tax assessments. This means you get the benefit of increased home value without paying higher property taxes.

Duration of the Exemption

This property tax exemption was ratified in Florida in July 2013 and will remain in effect through December 2037. Any solar system installed before this date should qualify for the exemption for the duration of its operational life.

How to Claim This Exemption

The exemption is typically applied automatically by your county property appraiser. After installation, notify your county property appraiser's office and verify the exemption has been applied to your assessment. If you notice an increase in property taxes after installing solar, contact your appraiser to ensure proper application.

Net Metering in Florida

Net metering allows you to earn credits for excess electricity your solar panels generate and send back to the grid. This is one of the most important ongoing financial benefits of going solar in Florida.

How Net Metering Works in Florida

Florida law requires that net metering customers receive compensation at the full retail rate for electricity sent to the grid. When your panels produce more than you use, the excess goes to the grid and you receive credits at the same rate you pay for electricity. Monthly excess credits roll over, and at year-end, remaining credits are paid at the utility's wholesale rate (typically 3-4 cents per kWh).

Net metering is available from Florida's investor-owned utilities (FPL, Duke Energy, Tampa Electric) as well as many municipal utilities and cooperatives.

Current Policy Status

You may have heard about proposed changes to Florida's net metering. In 2022, the legislature passed HB 741 to reduce net metering credits, but Governor DeSantis vetoed this bill. As of December 2025, full retail-rate net metering remains in effect. However, solar policy can change, so installing sooner may help ensure you benefit from current rates.

Local Utility Rebates and Programs

While Florida does not offer statewide solar rebates, several municipal utilities and electric cooperatives provide local incentives that can further reduce your costs.

JEA (Jacksonville)

JEA offers several solar-related incentive programs:

• Battery Incentive Program: Up to $4,000 rebate on battery storage systems with a minimum capacity of 6 kWh and a 10-year warranty
• Solar Water Heater Rebate: Up to $400 for converting electric water heating to solar water heating

OUC (Orlando Utilities Commission)

OUC provides multiple programs including battery rebates (up to $2,000 for 8 kWh systems), solar thermal rebates (up to $900), and low-interest solar loans up to $20,000 in cooperation with Orlando Federal Credit Union.

Lakeland Electric

Lakeland Electric offers a 50% battery storage rebate up to $1,000 (minimum 6 kWh capacity with 10-year warranty required).

Other Utilities

Additional utilities that may offer solar programs include the City of Tallahassee, Gainesville Regional Utilities, and various electric cooperatives. Contact your local utility directly to inquire about current incentives.

Note: Local utility programs change frequently and may have limited funding. Always verify current availability with your utility provider.

PACE Financing for Solar

Property Assessed Clean Energy (PACE) financing provides an alternative way to fund your solar installation without traditional loans or upfront costs.

How PACE Works

PACE financing has been available in Florida since 2010 under Section 163.08, Florida Statutes. Under this program:

• You receive funding to cover your solar installation costs with no upfront payment
• The financing is attached to your property, not to you personally
• Repayment is made through an assessment on your property tax bill
• Terms can extend up to 30 years

Benefits and Considerations

Potential benefits: No upfront costs, no high credit score required, payments can potentially be deferred, and financing transfers if you sell the property.

Important considerations: Interest rates typically range from 6% to 9% annually. Additional fees often include points of at least 5% plus annual administration fees. Some mortgage lenders will not refinance properties with PACE assessments, and Fannie Mae, Freddie Mac, FHA, and VA do not insure mortgages with PACE liens.

Alternative: The Solar and Energy Loan Fund (SELF) is a non-profit offering low-cost financing for Florida residents who prefer traditional loan structures.

Recommendation: Compare PACE with solar loans, home equity loans, and traditional financing before committing. Consult a financial advisor for your specific situation.

How to Maximize Your Solar Savings in Florida

The federal 30% tax credit is the largest incentive available, and it ends December 31, 2025. Given that installations typically take several months, homeowners interested in solar should begin the process as soon as possible.

Calculate Your Total Potential Savings

For a typical $25,000 solar installation in Florida, potential savings may include:

Total potential installation savings: $9,000 or more, plus ongoing electricity savings through net metering.

Steps to Get Started

1. Get multiple quotes from licensed Florida solar installers
2. Verify your utility's net metering policy and any local rebates
3. Confirm your federal tax liability with a tax professional to ensure you can use the full credit
4. Review financing options including cash purchase, solar loans, and leasing
5. Schedule installation with enough lead time to complete before December 31, 2025

Conclusion

Florida remains one of the best states for residential solar installation, with generous state-level incentives that continue even after the federal tax credit expires. The combination of Florida's sales tax exemption, property tax exemption, and robust net metering policy creates a favorable environment for solar investment.

However, the window for the federal 30% tax credit is closing rapidly. With the December 31, 2025 deadline approaching, Florida homeowners who have been considering solar should evaluate their options now. The federal tax credit alone could save you thousands of dollars on your installation.

By taking advantage of all available incentives, Florida homeowners may be able to significantly reduce both the upfront cost of solar and their ongoing electricity expenses for decades to come.